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how to make valuation basis on this ratios Liquidity ratio Formula 2019 2018 Current Ratio current Assets/current liabilities $29,504/$28,264 =1.04 $35,563/$29,607 =1.20 Quick test ratio

how to make valuation basis on this ratios

Liquidity ratio Formula 2019 2018
Current Ratio current Assets/current liabilities

$29,504/$28,264

=1.04

$35,563/$29,607

=1.20

Quick test ratio current -Inventory/ Current Liabilities

($29,504-$5,982)/$28,264

=$23,522/$28,264

=0.832

($35,563-$6,956)/$29,607

=$28,607/$29,607

=0.966

ASSET MANAGEMENT RATIO
Inventory Turnover Ratio sales / inventory

$47,498/$5,982

=7.94

$44,833/$6,956

=6.44

Days Sales outstanding 365 Account Receivable/ Sales

365$8301/$47,498

63.78days

365$8,727/$44,833

=71.04days

Total Assets Turnover sales / total Assets

$47,498/$118,370

=0.401

$44,833$145,563

=0.307

Fixed Assets Turnover sales / fixed Assets

$47,498/$88,866

=0.534

$44,833/$110,000

=0.407

DEBT RATIO
ROA net Income/total Assets

$11,737/$118,370100

=9.91%

$12,614/$145,563100

=8.66%

ROE net income/ owners equity

$11,737/$55,551100

=21.128%

$12,614/$78,692100

=16.029%

PROFITABILITY RATIO
Gross profit Margin gross profit/sales 100

$34,252/$47,498100

72.11%

$31,589/$44,833100

=70.45%

EBITDA MARGIN EBITDA/Sales

$9,086/$47,498100

=19.129%

$8,403/$44,833100

=18.742%

Pre tax Profit margin profit before tax / sales 100

$8,940/$4,7498100

=18.82%

$14,095/44833100

=31.432%

Net profit margin net Income/ sales 100

$11,737/$47,498100

=24,71%

12,614/$44,833 100

=28.13%v

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